QUARTERLY FACT SHEET 31 December 2016 DORIC NIMROD AIR THREE LIMITED

LSE: DNA3

The Company calculated on different exchange rates and using the Doric Nimrod Air Three Limited (“the Company“) is a average value of the aircraft as provided by the three independent external appraisers. Regarding the following Guernsey domiciled company, which was listed on the two tables, there is no guarantee that the aircraft will Specialist Fund Segment (SFS) of the London Stock be sold at such a sale price or that such capital returns Exchange’s Main Market on 2 July 2013 with the ad- would be generated. It is also assumed that the lessee will mission of 220 million Ordinary Shares (“the Equity”) at honour all its contractual obligations during the entire an issue price of 100p per share. The market capitalisation anticipated lease term. of the Company was GBP 220.6 million as of 31 December The contracted lease rentals are calculated to satisfy 2016. interest and principal in US dollars and distributions Investment Strategy and Company running costs in sterling. The Company The Company‘s investment objective is to obtain income is therefore insulated from foreign currency market returns and a capital return for its shareholders by volatility during the term of the leases. acquiring, leasing and then selling aircraft. I. Implied Future Total Return Components Based on Appraisals1 The Company acquired four A380 aircraft by the end of November 2013. Since delivery, each of The implied return figures are not a forecast and assume the the four aircraft has been leased to Airline Company has not incurred any unexpected costs. (“Emirates”) – the national carrier owned by the Aircraft portfolio value at lease expiry according to Investment Corporation of Dubai, based in Dubai, United • Prospectus appraisal USD 556 million 2 Arab Emirates – for an initial term of 12 years with fixed • Latest appraisal USD 521 million lease rentals for the duration. In order to complete the Per Share Income Return of Capital Total Return3 purchase of the aircraft, DNA Alpha Ltd (“DNA Alpha”), Distributions Prospectus Latest Prospectus Latest a wholly owned subsidiary of the Company, issued two Appraisal Appraisal4 Appraisal Appraisal4 Prospectus tranches of enhanced equipment trust certificates (“the 74p 169p 160p 243p 235p FX Rate5 Certificates” or “EETC”) – a form of debt security – in July Current 2013 in the aggregate face amount of USD 630 million. 74p 202p 191p 277p 266p FX Rate6 DNA Alpha used the proceeds from both the Equity and 1 2 the Certificates to finance the acquisition of the four new See final sentences in the fourth paragraph of Investment Strategy Date of valuation: 31 March 2016 3Excluding earned dividend 4Average of the aircraft. three appraisals as at the Company’s year-end in the expiry year of the respective lease 51.4800 USD/GBP 61.2341 USD/GBP (31 December 2016) The Company receives income from the leases and its directors are targeting a gross distribution to the shareholders of 2.0625p per share per quarter (amount- II. Company Facts (31 December 2016) ing to a yearly distribution of 8.25% based on the initial Listing LSE placing price of 100p per share). Ticker DNA3 The total return for a shareholder investing today (31 Current Share Price 100.25p (closing) December 2016) at the current share price consists of Market Capitalisation GBP 220.6 million future income distributions during the remaining lease Initial Debt USD 630 million duration and a return of capital at dissolution of the Outstanding Debt Balance USD 426.7 million (68% of Initial Debt) Company. The latter payment is subject to the future Current/Future Anticipated 2.0625p per quarter (8.25p per annum) value and the respective sales proceeds of the aircraft, Dividend quoted in US dollars and the USD/GBP exchange rate Earned Dividends 24.58p at that point in time. Since launch three independent Current Dividend Yield 8.23% appraisers provide the Company with their future values for the aircraft at the end of each financial year. The latest Dividend Payment Dates April, July, October, January appraisals available are dated the end of March 2016. The Expected Future Total Cash 2.65 (based on the Multiple1 Current Share Price)2 table below summarizes the total return components, 1See final sentences in the fourth paragraph of Investment Strategy 2Based on the latest appraisal and the current FX rate (including for maintenance, repairs and insurance) relating to II. Company Facts (continued) the aircraft during the lifetime of the leases. Total Expense Ratio 1.0% (based on Average Net Assets) Currency GBP Inspections Launch Date/Price 2 July 2013 / 100p The asset manager undertook records audits in November 2016 Average Remaining Lease 8 years 10 months for MSN 132 and in December 2016 for MSNs 133, 134, 136. The Duration technical documentation of MSN 132 was found to be in good Incorporation Guernsey order. The lessee was again very helpful in the responses given Aircraft Registration Numbers A6-EEK (29.08.2025), A6-EEL to the asset manager’s technical staff. Final reports for the (Lease Expiry Dates) (27.11.2025), A6-EEM (14.11.2025), A6-EEO (29.10.2025) other three aircraft were not available at the editorial deadline. Asset Manager Amedeo Management Ltd 2. Market Overview Corp & Shareholder Advisor Nimrod Capital LLP Between January and October 2016 passenger demand, Administrator JTC (Guernsey) Ltd measured in revenue passenger kilometres (RPKs), increased Auditor Deloitte LLP by 6.0% compared to the same period the year before. Adjusted Market Makers Jefferies International Ltd, for the extra day as 2016 is a leap year, traffic grew by 5.7%. Numis Securities Ltd, Growth remains broadly in line with its ten-year-average, Shore Capital Ltd, Winterflood Securities Ltd driven by a range of competing factors. The impact of terrorist SEDOL, ISIN B92LHN5, GG00B92LHN58 attacks and political instability in parts of the world has eased and global business confidence has picked up over the last few Year End 31 March months. However, the International Air Transport Association Stocks & Shares ISA Eligible (IATA) expects that lower oil prices and airfares, the key driver Website www.dnairthree.com of demand in recent years, might be a thing of the past as OPEC recently agreed on restricting oil supplies. In the latest report Asset Manager’s Comment on the economic performance of the airline industry released in December, IATA expects an RPK growth of 5.9% in 2016 and 1. The Assets 5.1% in the coming year. In November 2013, the Company completed the purchase of During the first ten months of 2016 passenger load factors all four Airbus A380 aircraft bearing manufacturer’s serial averaged 80.5%, down by 0.2 percentage points compared to numbers (MSN) 132, 133, 134 and 136. All four aircraft are the same period the year before. With minus 2.1 percentage leased to Emirates for an initial term of 12 years from the point points, the Middle East recorded the strongest decline in of delivery with fixed lease rentals for the duration. load factors as the added capacity outstripped brisk demand The A380s owned by the Company recently visited Auckland, significantly. IATA estimates an average worldwide passenger Bangkok, Brisbane, Los Angeles, Milan, New York JFK, Perth, load factor of 80.2% for this year and 79.8% for 2017. Port Louis, San Francisco, Sydney, and Zurich. Aircraft A regional breakdown reveals that Middle East airlines, utilisation for the period from delivery of each Airbus A380 including Emirates, continued to outperform the overall market until the end of November 2016 was as follows: demand again this year. Between January and October RPKs increased by 11.0% compared to the previous period. Asia/ Aircraft Utilization Pacific-based operators ranked second with 8.9%, followed by

Average Africa with 6.6%. Europe grew by 3.8%. Latin American and MSN Delivery Date Flight Hours Flight Cycles Flight Duration North American market participants recorded RPK growth of

132 29/08/2013 16,788 1,941 8 h 40 min 3.6% and 3.2% respectively.

133 27/11/2013 15,793 1,630 9 h 40 min Fuel is the single largest operating cost of airlines and has a significant impact on the industry’s profitability. According to 134 14/11/2013 15,877 1,675 9 h 30 min its latest report released in December, IATA expects an average 29/10/2013 16,101 1,660 136 9 h 40 min fuel price of USD 52.1 per barrel in 2016. This would be 22% lower compared to the previous year. Jet fuel prices have Maintenance Status started to rise with oil prices and IATA forecasts an average Emirates maintains its A380 aircraft fleet based on a maintenance price of USD 64.9 per barrel of jet fuel for 2017. Fuel costs in programme according to which minor maintenance checks 2017 are set to represent 18.7% of average operating costs, a are performed every 1,500 flight hours, and more significant 0.5 percentage point reduction from 2016. This is significantly maintenance checks (C checks) at 24 month or 12,000 flight below the recent peak of 33.2% in 2012-13. Slower GDP growth hour intervals, whichever occurs first. Emirates bears all costs and rising costs have led to a downward revision of IATA’s 2016 airline industry profitability to USD 35.6 billion. This will still end of the financial year. At the same time 19 older aircraft had be the highest absolute profit generated by the airline industry been removed from the fleet by the end of September, with and the highest net profit margin (5.1%) to date. For 2017 a further 8 to be returned by the end of March 2017. Having Alexandre de Juniac, IATA’s Director General and CEO, expects retired its last /A340s in November 2016, Emirates a “very soft landing” with an industry net profit of USD 29.8 only operates Airbus A380s and Boeing 777s. New aircraft billion. types, such as the and the Boeing 787, will not join

© International Air Transport Association, 2016. Air Passenger Market the fleet before 2021/22, said Tim Clark, President of Emirates. Analysis October 2016 / Economic Performance of the Airline Industry, Emirates made use of the additional capacity by expanding 2016 End-Year Report / Press Release No. 76: Another Strong Year for Airline Profits in 2017. All Rights Reserved. Available on the IATA Economics page. its global route network and launched passenger services to four new destinations in Asia (Hanoi, Yangon, Yinchuan 3. Lessee – Emirates Key Financials and Zhengzhou). As of 30 September 2016, Emirates’ global In the first half of the 2016/17 financial year ending on 31 network spanned 155 destinations in 82 countries. March 2017 Emirates made a net profit of USD 214 million – a In December 2016 released its 6th Annual decrease of 75% compared to the same period in the previous Environmental Report covering the 2015/16 financial year. year. The net profit margin was 1.9%. Revenue for the period Airline operations constitute the main environmental impact of reduced slightly by 1% to USD 11.4 billion. During the report the Emirates Group. Emirates has one of the youngest aircraft period Emirates experienced an unfavourable currency fleets in the industry: the aircraft have an average age of just environment. The US dollar continued to strengthen against 74 months compared to the industry average of 140 months. most other major, revenue-generating currencies and increased This modern wide-body fleet delivers environmental benefits competition resulted in lower average fares. Referring to the with regards to lower engine and noise emissions. During the macroeconomic situation Emirates Group Chairman and Chief period under review Emirates’ fleet achieved a passenger fuel Executive, His Highness (HH) Sheikh Ahmed bin Saeed Al efficiency of 4.2 litres per 100 RPKs compared with 3.99 litres Maktoum, said: “The bleak global economic outlook appears to in the previous period. This number was adversely impacted be the new norm, with no immediate resolution in sight.” by instabilities in many parts of the world including Ukraine, Emirates’ operating costs significantly benefited from the lower Syria, Iraq and Yemen. Flights that would normally transit oil price. Fuel costs were on average 10% lower compared to the these regions were re-routed to avoid conflict zones leading same period last year. The share of operating costs, compared to increased fuel consumption for these flights. Emirates with the first six months of last year, decreased from 28% to is committed to redoubling its efforts during the current 24%. Emirates’ total operating costs increased by 5% against financial year, looking at all aspects of its operations including the overall capacity increase of 9%. the continuing cooperation with authorities and air traffic management providers to ensure that the most fuel-efficient As of 30 September 2016, the balance sheet total amounted to flight paths can be utilized. USD 30.9 billion, a decrease of 5% compared to the beginning Source: aero.de, Emirates of the financial year. Total equity increased by 4.6% to USD 9.2 billion with an equity ratio of 29.9%. The current ratio stood at 4. Aircraft — A380 0.77, meaning the airline would be able to meet about three- By mid-December 2016 Emirates operated a fleet of 88 A380s quarters of its current liabilities by liquidating all its current which currently serve 44 destinations from its Dubai hub: assets. Significant items on the liabilities side of the balance Amsterdam, Auckland, Bangkok, Barcelona, Beijing, Birming- sheet included current and non-current borrowings and lease ham, Brisbane, Christchurch, Copenhagen, Doha, Dusseldorf, liabilities in the amount of USD 12.4 billion. As of 30 September Frankfurt, Guangzhou, Hong Kong, Jeddah, Kuala Lumpur, 2016, the carrier’s cash balance was USD 3.2 billion, down by Kuwait, London Gatwick, London Heathrow, Los Angeles, USD 2.2 billion compared to the beginning of the financial Madrid, Manchester, Mauritius, Melbourne, Milan, Moscow, year. This also included the repayment of two bonds in the total Mumbai, Munich, New York JFK, Paris, Perth, Port Louis, amount of more than USD 1.1 billion. Prague, Rome, San Francisco, Seoul, Shanghai, Singapore, During the first half of the 2016/17 financial year Emirates Sydney, Taipei, Toronto, Vienna, Washington, and Zurich. From continued to increase its capacity for passengers (measured in 30 October 2016 Emirates upgraded its Dubai to Christchurch ASK) by 12%. At the same time the airline recorded 8% more route from a -300ER to an Airbus A380. The removal RPKs than in the same period the previous year. As a result, the of the en-route stop in Bangkok enables passengers to travel all passenger load factor dropped by 3 percentage points to 75.3%. the way between Christchurch and Dubai with just one stop in This key indicator is almost identical to the average passenger Sydney, reducing the journey time by about two hours in each load factor in the Middle East of 75.4%. Emirates carried direction. On 1 December 2016 Emirates upgraded one of the 28 million passengers between 1 April and 30 September 2016, nine daily flights between Dubai and Doha to an A380 service. 9% up from the same period last year. It is the most served destination in the airline’s network. With a flying distance of only 379 kilometres each way, it is the Between April and September 2016 the airline received 16 wide- world’s shortest scheduled A380 flight, operated in a 3-class body aircraft with 20 more scheduled to be delivered before the configuration with 519 seats in total. Johannesburg (South Africa) will complement Emirates’ global temporary increases in capacity during major overhaul events list of A380 destinations from February 1, 2017. of their own fleet or for certain periods during the year. To cover all these future business opportunities Bellew suspects the By mid-December 2016 the global A380 fleet consisted of 201 initial fleet could grow to up to twenty aircraft and might also commercially operated planes in service. The thirteen operators include “the largest” Boeing 777s. MAS plans to reconfigure its are Emirates (88), (19), Deutsche Lufthansa relatively young A380s to accommodate up to 700 passengers, (14), Qantas (12), British Airways (12), Air France (10), Korean a capacity increase of more than 40% compared to the 3-class Airways (10), (8) Malaysia Airlines (6), Qatar configuration currently installed. Airways (6), Thai Airways (6), China Southern Airlines (5), and Asiana (5). The number of undelivered A380 orders stood at Also in November 2016 Emirates indicated that it will likely 120. seek to extend leases on its A380s. Asked about the probability of using the aircraft beyond the 12 years the operator has In November 2016 Malaysia Airlines (MAS) detailed its plans typically contracted, Emirates’ senior vice president of to operate religious pilgrimage flights with its A380 fleet of six corporate treasury said “we want to keep it for a long time. The aircraft. According to Peter Bellew, CEO of MAS, they are in the type has proven to be a flexible platform” and is a core product process of setting up a subsidiary with a separate Malaysian air for the airline. operator certificate and it “should be fully operational by spring 2018”. “MAS is already transporting Muslim pilgrims on charter Middle Eastern carrier Emirates is to defer delivery by twelve flights to Saudi Arabia very successfully and is in a good position months of 6 Airbus A380s which had been due to arrive in 2017 to cater for increased passenger demand on this route,” Bellew and 6 which had been due to arrive in 2018. The postponement said. The operator will be run on sharia-compliant principles, follows an agreement between Emirates and Rolls-Royce, which which include the use of Islamic financing instruments, but manufactures the Trent 900 engine for the type. will not be restricted to Hajj and Umrah business. Bellew also Source: Ascend, CAPA, Emirates, FlightGlobal, New Straits Times sees opportunities to operate non-religious charters. Further demand might come from existing A380 operators seeking

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Company Corporate & Shareholder Advisor Doric Nimrod Air Three Limited Nimrod Capital LLP Dorey Court, Admiral Park 3 St Helen’s Place St Peter Port London EC3A 6AB Guernsey GY1 2HT Tel: +44 20 7382 4565 Tel: +44 1481 702400 www.nimrodcapital.com www.dnairthree.com © Kavin Kowsari

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To the extent permitted by law neither the Company nor the Asset Manager nor their directors or officers shall be liable for any loss or damage that anyone may suffer in reliance on such information. The information in this document may be changed by the Company at any time. Past performance cannot be relied on as a guide to future performance. The value of an investment may go down as well as up and some or all of the total amount invested may be lost.